Location as the Key: Why the Position of a Property Has the Greatest Impact on Its Value
- Jan Halik
- Dec 5, 2025
- 3 min read
Many people, when imagining a new home, first think of a modern kitchen, a pleasant balcony, sufficient space, or a nice view of greenery. These features are undoubtedly appealing. However, the true value of a property often lies in something less visible – its location. Whether it’s a starter apartment, a family house, or an investment property, one principle always remains the same: location plays a key role.
The importance of location is not unique to the Czech real estate market. It has gained widespread recognition abroad as well – so much so that British television Channel 4 built an entire show around this concept, titled “Location, Location, Location.” In the program, experts help buyers find the right home with a strong emphasis on choosing the right area, not just the layout or size of the property. The show emerged at the turn of the 1990s and early 2000s, during a period of significant shifts in the UK property market. Its main message, however, is timeless: it is not only how you live, but where you live that determines value and comfort.
⬆️ What Makes a “Good Location”
Today’s buyers pay close attention to what everyday life will look like in the area they choose. It’s not just about commuting to work, but about the overall daily functioning of the household. The value of a location significantly increases when it offers:
good public transport connections
essential services within walking distance
nearby schools and kindergartens
access to healthcare, parks, and leisure opportunities
low traffic burden and a good level of safety
a stable and long-term demand for housing
Properties situated in such locations tend to hold their value even during slower periods on the real estate market.
⚠️ Zoning Plans: A Factor Many Buyers Underestimate
When assessing a location, it’s crucial not only to look at what currently surrounds the property but also at what may be developed in the years ahead. This is determined by the zoning plan.
A zoning plan can reveal, for example:
a planned road or bypass
construction of a new residential complex
commercial buildings or a shopping center
protected green areas and parkland
A quiet field behind the house today may turn into a busy road or construction site in the future. This is why reviewing the zoning plan is one of the most important steps when evaluating a property’s location.
🌱 How Location Influences Everyday Life
A good location significantly enhances daily comfort in many ways:
shorter everyday commuting
the ability to handle most errands on foot
a pleasant environment for children and seniors
reduced stress thanks to lower traffic
opportunities to spend free time in the surrounding area
Ultimately, these factors often contribute more to long-term satisfaction than a new kitchen or a designer bathroom. Buyers are well aware of the benefits of a quality location – and they are willing to pay more for it.
🧩 How Much Can Location Influence the Price?
Differences between individual districts of Prague are substantial.Sought-after locations generally maintain higher market values, sell faster, and achieve better results in rental yield.
In contrast, properties in less attractive areas tend to sell more slowly, negotiations can be more complicated, and the final price often falls short of the seller’s expectations.
Years of experience across the Prague real estate market clearly confirm that location is the strongest factor influencing the final price of a property.
🏡 Why Location Matters Even More for Investment Properties
Stable demandA good location remains attractive even when the market cools down.
Higher rental income and more reliable tenantsInvestment properties in quality areas have a lower risk of vacancy.
Better appreciation over timeThe location often increases a property’s value more than a renovation.
Lower investment riskEven during downturns, strong locations maintain more stable pricing.
💶 How to Properly Evaluate a Location Before Buying or Selling
A common mistake is relying solely on the prices of nearby properties without considering differences in micro-location, transport accessibility, or planned development in the area.
A thorough location assessment includes:
a detailed analysis of accessibility and amenities
a review of the zoning plan
comparison of recent sales in the immediate area
evaluating demand for the specific type of property
understanding the long-term investment potential
Here, expert valuation plays a key role – especially in Prague, where prices can vary significantly even between two neighboring streets.
✨ Final Recommendation
Location is the factor that determines a property’s value the most – and it’s also the one factor you cannot change.It is therefore essential to evaluate it carefully whether you are buying or selling.
If you are considering selling or purchasing a property in Prague and want an accurate assessment of the location and real market value, I will be happy to assist you.
Source: https://www.remax-czech.cz/blog/lokace-lokace-lokace-nejdulezitejsi-faktor-pri-koupi-nemovitosti
Jan Halík
Real Estate Agent
📞 +420 603 377 791
RE/MAX Atrium
Podolská 811/138
140 00 Praha 4 – Podolí
